Team:

Clara Gundersen

Carma Howard

Brian Loosli

Allison Mikkelsen

Janet Petersen

Bobby Walker

BACKGROUND

• The company began in the 1860’s with the Tabasco Brand Pepper Sauce created by Edmund McIlhenny

• Today the product is still manufactured at the original site on Avery Island Louisiana

• The company has approximately 200 hundred employees and half of them live on the island

S WO T A NA LY S I S

Strengths

• Flavor has a Kick

• Brand Recognition

• No Preservatives

• Easy Starter

Weaknesses

• Comes In A Jar

• Not Homemade

• Seen As Seasonal Item

• Cost is Higher than Similar Products

Opportunities

• Develop in New Market Areas

• Consumer Creativity

• Host Community Food Events

Threats

• Competition From Premade Products

• Shelf Placement

• Distance from Consumer Market

Implement Marketing Mix and

Allocate Resources

• Product and value creation – – Home cooked taste at an affordable price.

• Price and value capture – – Current retail price is at $3.64 - $3.73 at Kroger Dallas/Houston.

– Evaluate costs to become more competitive.

• Place and value delivery – – Placement in store that makes it easy to find.

– Do market study/focus group to help determine placement.

– Online shopping sites

• Promotion and value communication – – Direct mailers to consumers - loyalty card data.

– In store demos

Evaluate Performance

Using Marketing Measures

Market Share Analysis

Kroger Division

Dallas/Houston Market

2016 Year To Date

TABASCO HOT SAUCE – CASH COW

Mfg Name

Scanned

Movement -

CURRENT

Total 581,454

BRUCE 145,843 25.08%

MC ILHENNY 126,168 21.70%

RECKITT BE 92,627 15.93%

GRUPO CUER 63,752 10.96%

KROGER 40,291 6.93%

OTHER 19.40%

25%

22%

16%

11%

7%

19%

Tabasco Chili Starter – Question Mark Chili Category

Nalley Chili - $1.15

Hormel Chili $1.59

Tabasco Chili Starter $3.64 - $3.73

CHILI CATEGORY 991,004

OTHER 658,406 66.44%

NLLY CHILI 14 OZ 167,874 16.94%

HRML CHILI WITH BEANS 15 OZ 161,993 16.35%

TBSCO 7 SPICE CHILI STRTR 16 OZ 1,678 0.17%

TBSCO SPCY 7 SPC CHL STRT 16 OZ 1,053 0.11%66.44%

16.94%

16.35%

0.17%

0.11%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%

1

Chili Category

Tabasco Chili Starter – Question Mark Seasoning Category

McCormick- $1.00

Kroger - $0.76

Tabasco Chili Starter $3.64 - $3.73

SEASONING CATEGORY 1,492,840

OTHER 1,424,826 95.44%

MCCO CHILI SEASON MIX 1.25 OZ 50,860 3.41%

KRO CHILI SEASONING 1.25 OZ 14,423 0.97%

TBSCO 7 SPICE CHILI STRTR 16 OZ 1,678 0.11%

TBSCO SPCY 7 SPC CHL STRT 16 OZ 1,053 0.07%

• Market Segmentation – Demographics

• Gender – Female

• Age – 25-50

• Income – $35,000 – $50,000

• Interests – Cooking, Healthy Lifestyle

• Targeting – Females with children who are looking for affordable but

nutritional options for meals that don’t require a lot of preparation time

• Positioning – Target market all Smith’s operating areas. Target middle

class women who can afford higher cost product, are more health conscious, watch TV cooking shows and are more apt to try new things.

Sales Promotions

Conclusion

Chili

It’s not just for winter anymore